48117 London Bridge Pl

Indio, CA 92201

$725,000F

3 bd · 2.5 ba · 2,692 sqft · Built 2012 · SingleFamily · Active · 49 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,336/mo
• Mortgage (P&I): −$3,802
• Tax + insurance: −$929
• HOA: −$170
• Vac / Maint / Mgmt: −$701
• Net cashflow: $-2,266/mo
• Annual: $-27,187/yr
• Cap rate: 2.54%
• Cash-on-cash: -13.39%
• DSCR: 0.40
• 1% rule: 0.46%
• Cash to close: $203,000

Investor read

• This is a 3-bed/2.5-bath single-family listed at $725k.
• At list price, monthly cash flow is $-2k ($-27k/yr) — negative.
• To cash-flow at today's rent, offer at most $325k (55.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $334k (54.0% below list).
• It's been on market 49 days — a 3% lower offer ($703k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $325k (55.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 53/100 on livability (#927 in CA) — a working-class tenant base; expect higher turnover. Strengths: housing B+; Watch: employment D, crime F, amenities F.
• Coachella Valley Unified (rural): math 12% / reading 23% proficiency, ranked #481 of 517 in CA (top 93%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 79% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Mountain Vista Elementary (math 11% / reading 24%, grade F, #1,329 of 1,571 statewide, top 85%, 600 students, 74% FRL); Cahuilla Desert Academy Junior High (math 18% / reading 36%, grade F, #242 of 498 statewide, top 50%, 669 students, 79% FRL); Coachella Valley High (math 18% / reading 38%, grade F, #777 of 1,170 statewide, top 67%, 2,657 students, 88% FRL) — zoned schools at 80% FRL track the district average.
• Market conditions: Rents rising (+3.3%/yr); 515 active listings in the ZIP; 40 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 72% of comp listings sitting > 30 days — soft ceiling on asking rent; 9,195 units permitted in Riverside County in 2024 (1,512 in 5+ unit buildings).
• Riverside County population projected at +22% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• 2 sale attempts; this cycle's ask has dropped $75k (9%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Current owner paid $428k; list at $725k implies a 69% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 2.5% vs local median 4.3% in Indio — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.
• At $3,336/mo this rent would consume 60% of the median local household income ($67k/yr) (locally 2036% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 49 days. Have you received any prior offers? Is the seller open to a 55% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.